From the course: Blockchain Programming in iOS Using Swift

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What is a centralized ledger?

What is a centralized ledger?

- [Instructor] Let's say that John needs to send some money to Mary. And let's also assume that John and Mary are not neighbors but they live quite far apart, maybe thousands of miles apart. Now the current way of sending the money from John to Mary includes a middleman. Now that middleman can be a bank. John is going to send the money to the bank. The bank is going to verify that Mary actually exists and then the bank is going to send the money to Mary. Now John may be sending $20 and Mary is going to get $18. You might be wondering what happened to those $2. Well that's the cut that the bank is going to charge for the transaction fees. Not only the high transaction fees are the problem with this approach, but also the amount of time the money went from John to Mary. It actually might take three to five business days and that's just too late. Apart from the money, the transaction fee, the three to five business days now you have a central place, which is a bank, and if there are bad…

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